March 27, 2024
Franklin Templeton seeks SEC approval for Bitcoin ETF
Bitcoin News

SEC Faces Deadline as Franklin Templeton Seeks Green Light for Bitcoin ETF

Franklin Templeton, an asset manager, submitted an application to the United States Securities and Exchange Commission (SEC) on September 12, seeking approval for the launch of a Bitcoin exchange-traded fund (ETF).

The submission of the S-1 registration statement follows recent developments where the SEC postponed its decisions regarding spot ETF applications from various firms, including WisdomTree, Valkyrie, Fidelity, VanEck, Bitwise, and Invesco, until August 31st. Additionally, there was a court ruling on August 29th mandating the SEC to consider Grayscale’s request to transform its Bitcoin (BTC) futures ETF into a spot ETF.

Franklin Templeton’s proposed fund would adopt a trust structure, with Coinbase entrusted to safeguard the BTC assets, while the Bank of New York Mellon would assume the role of cash custodian and administrator. Trading of the fund’s shares is intended to take place on the Cboe BZX Exchange. The SEC has set its next deadline for assessing this application for October 16th. In its application, Franklin Templeton highlighted the potential risks stemming from the uncertain regulatory landscape:

“Digital asset markets in the U.S. exist in a state of regulatory uncertainty, and adverse legislative or regulatory developments could significantly harm the value of bitcoin or the shares, such as by banning, restricting, or imposing onerous conditions or prohibitions on the use of bitcoins, mining activity, digital wallets, the provision of services related to trading and custody of bitcoin, the operation of the Bitcoin network, or the digital asset markets generally.”

For daily valuations, the fund would rely on CF Benchmarks, a digital asset index provider regulated in the United Kingdom, which would base its assessments on data from the Coinbase, Bitstamp, iBit, Kraken, Gemini, and LMAX Digital exchanges. These valuations would be computed at 5-minute intervals. Franklin Templeton currently manages assets totaling $1.5 trillion, and the price of Bitcoin has increased by more than 4%. 

Image by freepik

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